OPEC Meeting In Vienna

[LTVibe]

OPEC considers cutting oil production

"'We believe the market is oversupplied,' Iran’s oil minister, Gholam Hossein Nozari, told reporters..."

"Venezuelan Oil Minister Rafael Ramirez has drawn the line at US$100 per barrel of oil.
Anything below that should serve as a wake-up call for OPEC to tighten the spigots, he says —
sentiment that is shared by other OPEC members."

 

[Cutehumor]

They are getting scared. When I extend my oil changes, it gives me satisfaction that I'm taking money out of the middle east.

 

[crinkles]

1 gallon oil per 5000 miles (or even 1 gallon per 10,000 miles) is peanuts compared to the 170 gallons of fuel... taking a drop out of the middle east's bucket. But every drop counts.

 

[Shannow]

There's a sweet spot for the oil producers, between too low a price and too high.

Their profit is volume times margin.


Price goes up, volume reduces some, and the profit increases, until you stretch the buyers a little, and the profitability per barrel increases, but total profit reduces...drop the price, and consumption comes back, profit per barrel drops, but profitability increases.

It think that it will take a few oscillations for the marble to find the sweet spot, so will soon go up again, but maybe not as high as last time...get my drift ?

Then, as the finite resource becomes less the sweet spot moves steadily upward with declining volume until something takes oil's place.

 

[hone eagle]

Google is our friend
I just asked -OPEC quota cheat- and got 10 pages+ of hits ,it seems that OPEC has never been able to enforce a quota and that they ALL cheat to maximize $ flow.
In fact the one and only time they have delivered on a threat was in the 70's when the oil was shut down.
For the past 7 months oil has been pumped at a rate of 500.000 bbl a month per month(thats 1/2 million bbl more than the previous months x 7)and again this month in spite of the reduction press release.
Its all talk because they cant enforce the quotas, never could.

 

[ZZman]

They wouldn't need quotas if they all agree to sell whatever oil they pumped at 90-100 a barrel.

 

[oilyriser]

If they did that, I would buy it all and resell it to the world at a higher price.

 

[LTVibe]

October 8, 2008 update:

Opec members seek emergency meeting

Quote:
Members of the OPEC oil cartel are considering an emergency meeting in Vienna next month as oil prices dropped to their lowest level in nearly a year.


Just what the world economy needs right now...higher oil prices.

 

[Steve S]

Originally Posted By: ZZman
They wouldn't need quotas if they all agree to sell whatever oil they pumped at 90-100 a barrel.
If I owned oil wells I would sell the oil as high of a price I could get.

 

[moribundman]

Originally Posted By: Steve S
If I owned oil wells I would sell the oil as high of a price I could get.


Every well will run dry some day.

 

[Tempest]

Originally Posted By: Steve S
Originally Posted By: ZZman
They wouldn't need quotas if they all agree to sell whatever oil they pumped at 90-100 a barrel.
If I owned oil wells I would sell the oil as high of a price I could get.

Since he works for the Government, I think we should cap his current salary and double his work load so that the rest of us can have lower taxes.

 

[Mustang2008Z]

Everybody could help the situation by writing to companies like Safety-Klean, Evergreen, etc., and ask that they sell their re-refined motor oil to retailers and to the public rather than to the governments like federal,state,county, and city governments. We need to re-use the re-refined motor oil as long as it meets GF-4 and soon, GF-5 ILSAC Rules and has API Approval SM or the next level. We would be able to undercut OPEC even with their decreased production of crude oil. That would end their monopoly and then we could use their oil production to our advantage (USA Advantage). Please think about it........

 

[Mustang2008Z]

Just a thought.....

 

[Gary Allan]

That would probably have to be a subsidized effort. It could simply be accomplished by mandating that 25% of all refiners sales be comprised of re-refined petroleum. This would create demand for the used motor oil. The supply stream is pretty much already in place.

I don't know if it would really save any petroleum. You have to process so much crude for fuel needs, so the leftovers have to go somewhere.